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It is important to understand that privacy considerations with respect to a Smart Grid include examining the rights, values, and interests of individuals; it involves the related characteristics, descriptive information, and activities [NISTIR 7628r1]. Thus, data privacy is impacted by the practices of customers who supply personal data and all entities that gather or handle that data.

Also, new energy usage data collected outside of smart meters, such as from home energy management systems (EMS), is also created through applications of Smart Grid technologies. As those data items become more specific and are made available to additional individuals, the complexity of the associated privacy issues increases as well.

Another perspective on privacy is described as consisting of four dimensions [NISTIR 7628r1]:

 Privacy of personal information involves the right to control when, where, how, to whom, and to what extent an individual shares his/her own personal information, as well as the right to access personal information given to others, to correct it, and to ensure it is safeguarded and disposed of appropriately.

 Privacy of the person is the right to control the integrity of one’s own identity and body (physical requirements, health problems, and required medical devices).

 Privacy of personal behavior is the right to keep any knowledge of their activities, and their choices, from being shared with others.

 Privacy of personal communications is the right to communicate without undue surveillance, monitoring, or censorship.

Privacy as a strategy for Smart Grid applications should include all four dimensions [NISTIR 7628r1]. Most Smart Grid entities directly address the personal information dimension, but the other dimensions are not included. There is a gap in the laws and regulations. Therefore, the other dimensions should also be considered in the Smart Grid context because new types of energy use data may be created and communicated. Unique electric signatures for consumer electronics and appliances could be compared against some common appliance usage profiles to develop detailed, time‐stamped activity reports within personal dwellings. Charging station information might reveal the detailed whereabouts of an EV/PEV/PHEV. This data did not exist before the application of Smart Grid technologies. Smart Grid applications may reveal details (energy usage patterns or other type of activities), either explicitly or implicitly, about an individual’s household dwelling or other type of premises.

Although many of the types of data items accessible through the Smart Grid are not new, there is now the possibility that other parties, entities, or individuals will have access to those data items, and there are now many new uses for and ways to analyze the collected data, which may raise substantial privacy concerns. The reputation of an energy service provider might also be impacted by gaps in customer data privacy protection.